1. In 2005, Matthew purchased land for $97,000 for use in his business. He sold it in 2015 for $103,000. What are the amount and type of gain on this sale, before netting of any other gains and/or losses?
a. $6,000 short-term capital gain.
b. $6,000 long-term capital gain.
c. $6,000 ordinary income.
d. $6,000 §1231 gain.
2. On May 20, 2014, Jessica purchased land for $103,647 to use in her business. She sold it on May 21, 2015 for $100,595. What are the amount and type of loss on this sale if Jessica does not have any other sales from a trade or business?
a. $3,052 deferred loss.
b. $3,052 long-term capital loss.
c. $3,052 ordinary loss.
d. $3,052 § 1231 loss.